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Why Should You Hold Owl Rock Capital (ORCC) in Your Portfolio?
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Owl Rock Capital Corporation ( is currently riding on its healthy revenue stream, a solid suite of products, strong credit performance and a robust portfolio. ORCC exited the third quarter with $12.1 billion across 130 companies.
Owl Rock Capital evaluated more than 30 opportunities in 2021. ORCC’s $13 billion worth of assets fortify its position in the market. Despite the current market uncertainty, ORCC managed to deploy capital to attractive investments and drive an incremental yield in the portfolio. It continues to seek opportunities in stable, large and recession-resistant businesses.
ORCC has been witnessing strong investment income growth since its inception in 2015. In fact, its investment income saw a CAGR of 129.8% during the 2016-2020 forecast period, which is impressive. In the first nine months of 2021, total investment income rose 27.1% year over year on the back of an expanded investment portfolio.
Its inorganic growth story also impresses. Owl Rock Capital Group and Owl Capital Partners announced their merger with Baltimore Acquisition Corp, a special purpose acquisition company.
Owl Rock Capital and Dyal Capital Partners completed their pending business combination to form Blue Owl Capital Inc. All these initiatives poise ORCC well for growth.
On the back of its solvency level, it paid out several special dividends apart from the regular ones in 2020. Its dividend yield stands at 8.6%, much higher than its industry's average of 1.7%. This should instill investors’ confidence in the stock.
The earnings estimate for 2022 indicates an upside of 8.5%.
Some better-ranked stocks in the same space are Alerus Financial Corporation (ALRS - Free Report) , Houlihan Lokey, Inc. (HLI - Free Report) and Guild Holdings Company (GHLD - Free Report) . While Alerus Financial and Houlihan Lokey currently sport a Zacks Rank #1, Guild Holdings carries a Zacks Rank #2 (Buy).
Alerus Financial is a financial services company. ALRS’ bottom line managed to beat estimates in three of its trailing four quarters (while missing the mark in one), the average beat being 23.58%.
Houlihan Lokey is an investment bank, which focuses on mergers and acquisitions, financings, financial restructurings and financial advisory services. HLI delivered a trailing four-quarter surprise of 39.53%, on average.
Guild Holdings Company provides financial services. Earnings of GHLD managed to beat estimates in three of its trailing four quarters (while missing the mark in one), the average surprise being 57.31%.
While shares of Alerus Financial and Houlihan Lokey have gained 23.7% and 54.1% each, the stock of Guild Holdings has lost 0.7% in the past year.
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Why Should You Hold Owl Rock Capital (ORCC) in Your Portfolio?
Owl Rock Capital Corporation ( is currently riding on its healthy revenue stream, a solid suite of products, strong credit performance and a robust portfolio. ORCC exited the third quarter with $12.1 billion across 130 companies.
Owl Rock Capital evaluated more than 30 opportunities in 2021. ORCC’s $13 billion worth of assets fortify its position in the market. Despite the current market uncertainty, ORCC managed to deploy capital to attractive investments and drive an incremental yield in the portfolio. It continues to seek opportunities in stable, large and recession-resistant businesses.
ORCC has been witnessing strong investment income growth since its inception in 2015. In fact, its investment income saw a CAGR of 129.8% during the 2016-2020 forecast period, which is impressive. In the first nine months of 2021, total investment income rose 27.1% year over year on the back of an expanded investment portfolio.
Its inorganic growth story also impresses. Owl Rock Capital Group and Owl Capital Partners announced their merger with Baltimore Acquisition Corp, a special purpose acquisition company.
Owl Rock Capital and Dyal Capital Partners completed their pending business combination to form Blue Owl Capital Inc. All these initiatives poise ORCC well for growth.
On the back of its solvency level, it paid out several special dividends apart from the regular ones in 2020. Its dividend yield stands at 8.6%, much higher than its industry's average of 1.7%. This should instill investors’ confidence in the stock.
The earnings estimate for 2022 indicates an upside of 8.5%.
Zacks Rank and Price Performance
Shares of this presently Zacks Rank #3 (Hold) player have gained 10.2% in a year’s time, underperforming the industry's growth of 16.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks in the same space are Alerus Financial Corporation (ALRS - Free Report) , Houlihan Lokey, Inc. (HLI - Free Report) and Guild Holdings Company (GHLD - Free Report) . While Alerus Financial and Houlihan Lokey currently sport a Zacks Rank #1, Guild Holdings carries a Zacks Rank #2 (Buy).
Alerus Financial is a financial services company. ALRS’ bottom line managed to beat estimates in three of its trailing four quarters (while missing the mark in one), the average beat being 23.58%.
Houlihan Lokey is an investment bank, which focuses on mergers and acquisitions, financings, financial restructurings and financial advisory services. HLI delivered a trailing four-quarter surprise of 39.53%, on average.
Guild Holdings Company provides financial services. Earnings of GHLD managed to beat estimates in three of its trailing four quarters (while missing the mark in one), the average surprise being 57.31%.
While shares of Alerus Financial and Houlihan Lokey have gained 23.7% and 54.1% each, the stock of Guild Holdings has lost 0.7% in the past year.